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I need advice on how to handle my current (and new) debt situation. We recently had a 2nd child and daycare costs are killing us, $460 per week for 2 kids. We went from always having money leftover after paying bills to living paycheck to paycheck, or dipping into the savings account just a little.
This week, our AC had to be replaced and our hot water heater had 2 gas leaks, the damage total was $6100. The AC portion is on a 3 year, no interest finance plan for the $5800 cost which comes out to about $161 per month.
Next, one of our cars will be paid off in December so we have 4 payments left.
We have enough in our savings to pay off everything and get back to living more comfortably once the car is paid off and the AC bill is paid. Like most people, our savings account isn't giving very much interest so there really isn't a benefit to holding onto the money.
Should we pay off everything from our savings or should we tough it out and dip into the savings when we need to to pay the bills each month?
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